Page 14 - FSUOGM Week 27 2022

FSUOGM NEWS IN BRIEF FSUOGM

SOCAR and Uzbekneftegaz heating season, with President Volodymyr the Turkish Energy Market Regulatory
Ukraine is concerned about the coming
Council (EPDK). According to the council,
sign roadmap Zelenskiy claiming this will be the gas exports from Azerbaijan to Turkey
amounted to 733.92 mcm in April, which
“most difficult winter of all the years of
SOCAR (State Oil Company of independence.” He has banned the export is 4.83% lower than the same period last
Azerbaijan) and Uzbekneftegaz have agreed of oil, gas and coal from Ukraine in order to year. Azerbaijan accounted for 18.04% of
to expand cooperation in the oil and gas store enough for the colder months. all gas supplies to Turkey in April.
sector and have signed a road map, SOCAR These concerns were exacerbated after In general, in April, Azerbaijan
First Vice President, Acting President Vitrenko announced on June 22 that the remained in third place in terms of gas
Rovshan Najaf, tweeted on 5 July. country’s entire oil refining industry had supplies to Turkey. In the first place is
“During my meeting with the Chairman completely stopped due to targeted Russian Russia, which accounted for 46.28% of
of the Board of Uzbekneftegaz Mekhriddin rocket attacks. Russia has targeted several all deliveries, in the second place was
Abdullayev, a roadmap was signed to Ukrainian oil refineries since March as part Iran (20.59%), and in the fourth place
expand cooperation between SOCAR and of a tactic to limit the Ukrainian armed was Algeria (9.01%). Total gas exports
Uzbekneftegaz,” Najaf posted on Twitter. forces’ ability to manoeuvre effectively. to Turkey in April amounted to 4 bcm
Meanwhile, according to the press The European Bank for Reconstruction (a decrease of 13.92% compared to
release posted on the Uzbekneftegaz and Development (EBRD) pledged last April 2021). At the same time, pipeline
website, prospects for cooperation and month to lend up to €300mn to Naftogaz. gas accounted for 3.4 bcm (84.9% of all
joint implementation of projects in the It is expected that the company will use the deliveries, a decrease of 16.7%), LNG
oil and gas sector, as well as the results first €50mn to purchase emergency gas in 613.83 mcm (15.1% of all deliveries, an
of interaction, were discussed during the preparation for the colder months. increase of 6.1 %).
meeting between Najaf and Abdullayev. In total, the company plans to raise In total, supplies in April were carried
“The parties also discussed the current €1bn to buy up to 1bn cubic metres of gas out from five countries (Azerbaijan,
state of the implementation of joint projects to guarantee there is sufficient supply for Russia, Iran by pipelines, USA and
and considered mechanisms for their autumn and ensure that everyone has access Algeria by LPG). Turkey is supplied with
acceleration. Separately, the prospects for to crucial facilities. Azerbaijani gas produced within the
joint implementation of projects in the oil framework of Stage-1 and Stage-2 of the
and gas and petrochemical industries were development of the Shah Deniz field.
discussed, in particular, the possibility of Fitch affirms KazTransOil’s Azerbaijan and Turkey signed a new
exchanging technologies and professional agreement in the third quarter of 2021
experience and a preliminary agreement IDRs at ‘BBB-’ with stable on the sale and purchase of gas from
was reached on joint study of projects,” the Stage 1 amounting to 11 bcm of natural
release said. outlook gas through the Baku-Tbilisi-Erzurum
In addition, possibilities of establishing pipeline. The agreement provides for the
cooperation between SOCAR, NIPIneftegaz Kazakhstan’s state-run oil pipeline supply by the end of 2024 annually 3.5 bcm
and UzLITIneftgaz were discussed. operator KazTransOil, whose shares are of gas per year from Shah Deniz Stage-1.
“During the meeting, they also discussed listed on the Kazakhstan Stock Exchange Deliveries under the agreement began on
the possibility of familiarising SOCAR (KASE), has informed KASE that the October 1, 2021. Azerbaijan in 2021, in
employees with the successful experience of international rating agency Fitch Ratings general, exported to Turkey 8.82 bcm of
Uzbekneftegaz in the field of gas chemistry has affirmed its long-term issuer default gas from the Shah Deniz field (a decrease
with a visit to the production enterprises of ratings in foreign currency at 'BBB-' with a of 22.7%).
the company, as well as issues of increasing stable outlook.
the export potential of oil and gas and The affirmation was said to reflect
petrochemical products of Uzbekistan with the company’s strong operational and Azerbaijan's oil production
the support of SOCAR,” the statement said. financial performance. The firm maintains
a dominant position in Kazakhstan’s oil quota within OPEC+ to
transportation sector, which is strategically
Naftogaz increases oil important for the country’s economy. increase by 11,000 barrels
The company's rating is constrained
deliveries by 2.5 times to by that of state-run oil and gas producer per day in August
KazMunayGas.
combat Ukrainian fuel crisis August under the OPEC+ deal will increase
Azerbaijan's quota for oil production in
Ukraine’s state-owned oil and gas Azerbaijan retains its by 11,000 barrels per day, Energy Minister
company Naftogaz is increasing oil delivery Parviz Shahbazov said on 30 June.
volumes by 2.5 times every month to position as one of top three “Azerbaijan supported the decision of
combat the national fuel shortage, Ukraine the OPEC+ ministers at the 30th meeting
Business News reported on July 1. gas suppliers to Turkey in to increase oil production by 648,000 bpd
The company has done this for three in August 2022 (by all participants in the
months in a row, according to CEO April deal). In accordance with this decision,
Yuriy Vitrenko. There is the possibility to Azerbaijan's oil production quota in August
increase delivery volumes by ten times, Azerbaijan exported 3 bcm of gas 2022 will increase by 11,000 barrels per
but Naftogaz’s imports were disrupted by to Turkey from the Shah Deniz field in day,” Shahbazov said.
logistical limitations in their delivery from January-April, which is 22.6% lower than As of July, Azerbaijan's quota was
large ports in Europe. the same period last year, according to 706,000 bpd. Thus for August, the country's

P14 www. NEWSBASE .com Week 27 07•July•2022